Chapter 13 - Manageable Payments to Creditors.
Chapter 13 bankruptcy is different from Chapter 7 in that instead of your debts being simply wiped away, you repay a manageable portion of those debts(often as low as 10%) through a payment plan lasting 3-5 years. The length of your payment plan and the amount you repay is based upon your disposable income. Your disposable income is based on the amount of money you have left over at all monthly expenses. Typically Lenders cannot foreclose or repossess if your plan is paying them back in full assuming you stay current from that point on
Another great tool that Chapter 13 bankruptcy allows in certain cases is the removal of judgment liens and even second mortgages if your house is completely under water. As your bankruptcy attorney I will do everything I can to make sure your payment is as low as possible.
To quality for Chapter 13, you need to show you are able to meet your plan payments. Often times, those filing Chapter 13, did not qualify for a Chapter 7, because of their income being higher than the maximum income allowed by a Chapter 7 filing or some other reason like they filed bankruptcy within the last 8 years. However, the vast majority of those seeking bankruptcy protection are able to file chapter 7. In 2019 there were only about 4,000 Bankruptcy(about 25% of Chapter 7 filings). Now there are limits as to how much debt you can have to file for Chapter 13. However, the limits are fairly generous and I would be happy to review your situation so that we can determine where you stand.